Summary.
What is more rare than undying loyalty? Apparently, an undying loyalty program. In the past few years, we’ve seen companies of all kinds killing off the programs they’d designed to inspire greater fidelity in the ranks of customers. Subway, the restaurant chain, got rid of its Sub Club cards, which allowed diners to earn a free sandwich after purchasing eight. In Australia, Coles supermarkets phased out a program that rewarded owners of the company’s stock with merchandise discounts ranging from 3% to 7.5%. Online phenomenon eBay quietly pulled the plug on its Anything Points program for U.S. customers. Target missed the mark, it seems, with its innovative approach involving “smart” credit cards. American Airlines and America Online jettisoned their joint customer-loyalty program. The list goes on. Even as loyalty programs are launched left and right, many are being scuttled, and not with a sense of mission accomplished.